Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration

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May 15, 2019

Contrary to the assertions made by the opponents of arbitration, employees in disputes with their employer are more likely to win cases, get more compensation, and get it more quickly in arbitration than in litigation.

This study, performed by ndp | analytics, examined nearly 100,000 cases between 2014 and 2018, including over 90,000 federal lawsuits and 10,000 arbitrations.

This analysis found that employee-plaintiffs in arbitration won:

  • three times more often than in litigation (32% of cases vs 11%)
  • almost twice as much money as in litigation ($520,000 on average vs. $270,000)
  • in far less time than in litigation (569 days on average vs 665)

In addition to these clear empirical advantages, ILR also conducted a national survey that showed strong, bipartisan support for preserving access to employment arbitration. Together, these studies demonstrate that resolving employment disputes through arbitration is both more popular and more effective than filing lawsuits.

 
05/15/2019